All of the Following Distributions of Stock Dividends Are Taxable

question 13

Multiple Choice

All of the following distributions of stock dividends are taxable except:

• A) fte shareholders have the choice to receive cash or other property instead of stock or stock rights.
• B) fte distribution of common stock is made on a prorated basis on common stock outstanding.
• C) fte distribution gives cash or other property to some shareholders and an increase in the percentage interest in the corporation's assets or earnings and profits to other shareholders.
• D) fte distribution gives preferred stock to some common stock shareholders and common stock to other common stock shareholders.

---

Definitions:

Monocular

Pertaining to, involving, or affecting only one eye.

Lateral Geniculate Nucleus

A part of the thalamus involved in the processing and relay of visual information from the retina to the visual cortex.

Fovea

A tiny pit located in the macula of the retina that provides the clearest vision of all.

Peripheral Vision

The area of vision that occurs outside the very center of gaze, enabling detection of objects and movement not directly in the line of sight.